Looking Through the Federal Arbitration Act

June 19, 2025

Wheatfall v. HEB reminds, as to actions to confirm arbitration awards, that: “After [the 2022 Supreme Court opinion in Badgerow], Courts may not “look through” a Section 9 and 10 [Federal Arbitration Act] action to establish federal question jurisdiction based on the underlying dispute. Because Wheatfall’s complaint does not raise a federal question on its face, the district court lacked subject matter jurisdiction.”

The opinion drops an intriguing footnote: “Because Wheatfall filed a new action in state court rather than reinstating the original action in federal court, we decline to address the “jurisdictional anchor” theory of continuing jurisdiction,” citing authority from the Fourth and Seventh Circuits – a theory that the court in which an action is filed and arbitration is then ordered continues to have jurisdiction through confirmation. No. 24-20257 (June 18, 2025).

 

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